DLA Piper advises RACQ on their AUD855 million strategic partnership with IAG

Global law firm DLA Piper has advised The Royal Automobile Club of Queensland (RACQ) on the formation of a strategic partnership with ASX-listed Insurance Australia Group Limited (ASX: IAG). This alliance is marked by the significant sale to IAG of a 90% interest in RACQ's existing insurance underwriting business, with an option to acquire the remaining 10% in two years on consistent terms. The consideration is valued at AUD855 million and includes entry into a 25-year strategic alliance agreement. The sale is expected to be completed in the second half of 2025, subject to the fulfillment of certain key conditions precedent.

RACQ is one of the strongest, most-trusted insurers in the industry spanning over 50 years with over 1.7 million members and this alignment brings together two organisations who share a commitment to providing innovative and leading insurance products.

"Having been a trusted adviser to RACQ on a number of significant agreements and investments over the years, we are proud to advise them on their most significant partnership to date," said Samantha O'Brien, Head of Insurance Sector, Australia, DLA Piper.

"This is a transformational transaction for RACQ and its members, under which members will continue to receive market-leading insurance products and services, whilst providing RACQ with greater capacity to invest in and accelerate its 2032 Strategy," said Lyndon Masters, M&A Partner, DLA Piper.

"We are pleased that we have been able to support a successful outcome for RACQ on the transaction," Lyndon added.

Our team successfully managed the complexities of this significant transaction, underscoring our deep experience in the insurance sector. The DLA Piper team was led by Corporate Partners Lyndon Masters and Samantha O'Brien, supported by Senior Associates Rohan Shukla and Ann-Marie Coleman, with significant contributions from a cross-practice team of lawyers across our Corporate, Financial Services, Competition, Intellectual Property, Technology and Employment teams.

DLA Piper is a leading global insurance advisor and for the 14th consecutive year, DLA Piper was the highest-ranked legal advisor in the world for M&A deal volume, according to Mergermarket's league tables. The firm was involved in 1,062 transactions worldwide in 2023